Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2023 (2) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 60 - SC - Indian LawsDishonor of Cheque - amicable settlement of dispute - Compoundable offence or not - Compounding by mutual consent between the parties - HELD THAT:- The terms and conditions of the settlement entered into by the parties binds them to settle the dispute amicably, or through an arbitration as has been stated in clause 8 of the Memorandum Of Understanding - the Appellants cannot be convicted on the basis of the orders passed by the courts below, as the settlement is nothing but a compounding of the offence. In the case of M/S. METERS AND INSTRUMENTS PRIVATE LIMITED & ANR. VERSUS KANCHAN MEHTA [2017 (10) TMI 218 - SUPREME COURT], this court held that the nature of offence under section 138 of the N.I Act is primarily related to a civil wrong and has been specifically made a compoundable offence. This is a very clear case of the parties entering into an agreement and compounding the offence to save themselves from the process of litigation. When such a step has been taken by the parties, and the law very clearly allows them to do the same, the High Court then cannot override such compounding and impose its will - It must also be noted that the Respondent No.2 was duty bound to file a compromise petition before the High Court, and by not doing the same has withdrawn key information from the High Court, which has led to an unwarranted confirmation of the Appellants’ conviction. The order of conviction passed by the trial court is set aside - appeal allowed.
|